Latest news with #GorillaGame:PickingWinnersInHighTechnology
Yahoo
3 days ago
- Business
- Yahoo
Nike (NKE) Stock Trades Up, Here Is Why
Shares of athletic apparel brand Nike (NYSE:NKE) jumped 16.1% in the morning session after the company reported fiscal fourth-quarter 2025 results that beat Wall Street's expectations and outlined plans to mitigate costs. Although Nike's fourth-quarter revenue fell 12% to $11.1 billion, the figure was still better than analysts had feared. The company reported earnings per share of $0.14, topping the consensus estimate of $0.12. Investors were particularly encouraged by the company's strategic plans, including efforts to reduce its reliance on manufacturing in China. Nike announced it expects to lower the proportion of US-bound footwear sourced from China from 16% to the high single-digits by the end of fiscal 2026. This move is aimed at mitigating the impact of tariffs, which the company warned could add about $1 billion in costs. Despite the sales decline and the significant drop in gross margin, the market reacted positively to the earnings beat and the proactive steps to re-align the supply chain for future growth. Is now the time to buy Nike? Access our full analysis report here, it's free. Nike's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Nike and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 19.6% on the news that the company reported weak second-quarter results. Unfortunately, its constant currency revenue missed. The company recorded weaknesses in its Lifestyle brand, especially in the Digital channel. Notably, digital channel sales declined 10% due to softer traffic, higher promotions, and lower sales of certain classic footwear franchises. Management cited these issues, in addition to macro headwinds (especially in China) and unfavorable FX, as the reasons for revising FY'25 guidance. Nike guided for fiscal 2025 sales to be down mid-single digits. Sales in the first half (1H'25) were expected to be down high single digits (vs. previous guidance for low single digits decline). Precisely, revenue was expected to be down 10% in Q1'25, given most of the challenges called out during the earnings call. Overall, this was a bad quarter for Nike. Nike is down 0% since the beginning of the year, and at $73.66 per share, it is trading 21.8% below its 52-week high of $94.19 from June 2024. Investors who bought $1,000 worth of Nike's shares 5 years ago would now be looking at an investment worth $768.42. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Why Are MillerKnoll (MLKN) Shares Soaring Today
Shares of office furniture manufacturer MillerKnoll (NASDAQ:MLKN) jumped 10.7% in the afternoon session after the company reported fourth-quarter 2025 earnings and revenue that surpassed analyst expectations. The company posted adjusted earnings of $0.60 per share on revenue of $961.8 million. This performance comfortably beat Wall Street's consensus estimates, which had predicted earnings of $0.44 per share on $913.8 million in revenue. The strong results were driven by sales growth across all business segments, with consolidated net sales rising 8.2% compared to the same period last year. Investors were also encouraged by an 11.1% increase in orders during the quarter. Looking ahead, MillerKnoll provided guidance for the next quarter that was above expectations, projecting revenues between $89 million and $939 million. Overall, this was a strong quarter. Is now the time to buy MillerKnoll? Access our full analysis report here, it's free. MillerKnoll's shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for MillerKnoll and indicate this news significantly impacted the market's perception of the business. MillerKnoll is down 12.1% since the beginning of the year, and at $19.70 per share, it is trading 36.5% below its 52-week high of $31.02 from July 2024. Investors who bought $1,000 worth of MillerKnoll's shares 5 years ago would now be looking at an investment worth $794.42. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
4 days ago
- Business
- Yahoo
Walgreens (NASDAQ:WBA) Exceeds Q2 Expectations
Pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 7.2% year on year to $38.99 billion. Its non-GAAP profit of $0.38 per share was 11.3% above analysts' consensus estimates. Is now the time to buy Walgreens? Find out in our full research report. "On March 6, 2025, WBA entered into a definitive agreement to be acquired by entities affiliated with Sycamore Partners. The merger is currently expected to close in the third or fourth quarter of calendar year 2025, pending shareholder and regulatory approvals and other conditions to closing. Upon completion of the transaction, WBA common stock will no longer be listed on the Nasdaq Stock Market, and WBA will become a private company." Revenue: $38.99 billion vs analyst estimates of $36.59 billion (7.2% year-on-year growth, 6.5% beat) Adjusted EPS: $0.38 vs analyst estimates of $0.34 (11.3% beat) Operating Margin: 0.1%, in line with the same quarter last year Free Cash Flow Margin: 0.9%, similar to the same quarter last year Market Capitalization: $9.78 billion Primarily offering prescription medicine, health, and beauty products, Walgreens Boots Alliance (NASDAQ:WBA) is a pharmacy chain formed through the 2014 major merger of American company Walgreens and European company Alliance Boots. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $154.6 billion in revenue over the past 12 months, Walgreens is a behemoth in the consumer retail sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it's harder to find incremental growth when you've penetrated most of the market. To expand meaningfully, Walgreens likely needs to tweak its prices or enter new markets. As you can see below, Walgreens grew its sales at a sluggish 3.8% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts). This shows it failed to generate demand in any major way and is a rough starting point for our analysis. This quarter, Walgreens reported year-on-year revenue growth of 7.2%, and its $38.99 billion of revenue exceeded Wall Street's estimates by 6.5%. Looking ahead, sell-side analysts expect revenue to decline by 1.6% over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and indicates its products will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Same-store sales is a key performance indicator used to measure organic growth at brick-and-mortar shops for at least a year. Walgreens has been one of the most successful retailers over the last two years thanks to skyrocketing demand within its existing locations. On average, the company has posted exceptional year-on-year same-store sales growth of 6.7%. Note that Walgreens reports its same-store sales intermittently, so some data points are missing in the chart below. We were impressed by how significantly Walgreens blew past analysts' revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. No guidance was provided due to the impending acquisition of the company. Zooming out, we think this was a solid quarter. The stock remained flat at $11.40 immediately after reporting. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
MillerKnoll (NASDAQ:MLKN) Reports Upbeat Q2, Stock Soars
Office furniture manufacturer MillerKnoll (NASDAQ:MLKN) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 8.2% year on year to $961.8 million. On top of that, next quarter's revenue guidance ($919 million at the midpoint) was surprisingly good and 3.2% above what analysts were expecting. Its non-GAAP profit of $0.60 per share was 37.4% above analysts' consensus estimates. Is now the time to buy MillerKnoll? Find out in our full research report. Revenue: $961.8 million vs analyst estimates of $913.8 million (8.2% year-on-year growth, 5.3% beat) Adjusted EPS: $0.60 vs analyst estimates of $0.44 (37.4% beat) Revenue Guidance for Q3 CY2025 is $919 million at the midpoint, above analyst estimates of $890.7 million Adjusted EPS guidance for Q3 CY2025 is $0.35 at the midpoint, above analyst estimates of $0.35 Operating Margin: 5.7%, down from 7.6% in the same quarter last year Backlog: $761.3 million at quarter end Market Capitalization: $1.2 billion Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $3.67 billion in revenue over the past 12 months, MillerKnoll is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, MillerKnoll grew its sales at a solid 8.1% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. MillerKnoll's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.2% over the last two years. This quarter, MillerKnoll reported year-on-year revenue growth of 8.2%, and its $961.8 million of revenue exceeded Wall Street's estimates by 5.3%. Company management is currently guiding for a 6.7% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months. Although this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. MillerKnoll was profitable over the last five years but held back by its large cost base. Its average operating margin of 5.2% was weak for a business services business. Analyzing the trend in its profitability, MillerKnoll's operating margin decreased by 7.7 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. MillerKnoll's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q2, MillerKnoll generated an operating margin profit margin of 5.7%, down 1.9 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for MillerKnoll, its EPS declined by 5.4% annually over the last five years while its revenue grew by 8.1%. This tells us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of MillerKnoll's earnings can give us a better understanding of its performance. As we mentioned earlier, MillerKnoll's operating margin declined by 7.7 percentage points over the last five years. Its share count also grew by 15.9%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q2, MillerKnoll reported EPS at $0.60, down from $0.67 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects MillerKnoll's full-year EPS of $1.95 to stay about the same. We were impressed by how significantly MillerKnoll blew past analysts' revenue and EPS expectations this quarter. We were also excited its revenue and EPS guidance for next quarter outperformed Wall Street's estimates. Zooming out, we think this was a solid print. The stock traded up 9% to $19.24 immediately following the results. MillerKnoll had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
AeroVironment (NASDAQ:AVAV) Surprises With Strong Q1 But Stock Drops
Aerospace and defense company AeroVironment (NASDAQ:AVAV) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 39.6% year on year to $275.1 million. The company's full-year revenue guidance of $1.95 billion at the midpoint came in 76% above analysts' estimates. Its GAAP profit of $0.59 per share was 51.5% below analysts' consensus estimates. Is now the time to buy AeroVironment? Find out in our full research report. Revenue: $275.1 million vs analyst estimates of $243.7 million (39.6% year-on-year growth, 12.9% beat) EPS (GAAP): $0.59 vs analyst expectations of $1.22 (51.5% miss) Adjusted EBITDA: $61.6 million vs analyst estimates of $55.53 million (22.4% margin, 10.9% beat) EBITDA guidance for the upcoming financial year 2026 is $310 million at the midpoint, above analyst estimates of $228.6 million Operating Margin: 5%, up from 3% in the same quarter last year Free Cash Flow was -$8.79 million compared to -$20.76 million in the same quarter last year Market Capitalization: $8.69 billion Focused on the future of autonomous military combat, AeroVironment (NASDAQ:AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, AeroVironment's 17.4% annualized revenue growth over the last five years was incredible. Its growth beat the average industrials company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. AeroVironment's annualized revenue growth of 23.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We can better understand the company's revenue dynamics by analyzing its most important segments, Products and Services, which are 88.1% and 11.9% of revenue. Over the last two years, AeroVironment's Products revenue (aircrafts, missile systems, satellites) averaged 18.4% year-on-year growth. On the other hand, its Services revenue (maintenance, training, consulting) averaged 3.8% declines. This quarter, AeroVironment reported wonderful year-on-year revenue growth of 39.6%, and its $275.1 million of revenue exceeded Wall Street's estimates by 12.9%. Looking ahead, sell-side analysts expect revenue to grow 141% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Although AeroVironment was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 1.1% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. Analyzing the trend in its profitability, AeroVironment's operating margin decreased by 6 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. AeroVironment's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q1, AeroVironment generated an operating margin profit margin of 5%, up 2 percentage points year on year. This increase was a welcome development and shows it was more efficient. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for AeroVironment, its EPS declined by 2% annually over the last five years while its revenue grew by 17.4%. This tells us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of AeroVironment's earnings can give us a better understanding of its performance. As we mentioned earlier, AeroVironment's operating margin expanded this quarter but declined by 6 percentage points over the last five years. Its share count also grew by 17.1%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For AeroVironment, its two-year annual EPS growth of 49.1% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history. In Q1, AeroVironment reported EPS at $0.59, up from $0.22 in the same quarter last year. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. We were impressed by how significantly AeroVironment blew past analysts' revenue and EBITDA expectations this quarter. We were also excited its EBITDA guidance outperformed. On the other hand, its EPS missed. Still, we think this quarter featured some important positives. Investors were likely hoping for more, and shares traded down 5.5% to $183 immediately after reporting. Is AeroVironment an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
